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Marketing communications - advertising
10. Marketing communications
10.1 Advertising
Advertising plays an important role in informing, entertaining, educating, persuading
and reminding customers. This role is more important for services where there is a high
degree of intangibility. Additionally effective communications are needed to inform
customers about their role in the service delivery process (e.g. how to make
reservations, deadlines for limited offers and so on).
Advertising can address different publics, internal and externals, separately or all
together. The same advertisement can be run to give confidence to investors, boost
employees morale and build up the corporate image in customers’ mind.
Internal objective can include: to inform employees about changes in the organisation,
to keep employees informed about company performance, to incentivate and motivate,
to educate employees, to disseminate marketing intelligence within the organisation, as
it will be seen in chapter 11 about people and internal marketing.
Objectives for external communications in the airline industry are: to inform the target
market about current and new service offerings and benefits, to educate customers, to
persuade to buy, to remind customers about the service and where it is available, to
publicise policy decisions and global alliances, to make public announcement, to
address the trade, to bounce out of a difficult market environment, to support and
maximise response from other promotional activities, to generate positive PR from new
ideas and to build up strong brands and corporate image.
Advertising can be directed to build an umbrella brand or masterbrand which is to be
associated with the overall airline’s image (Virgin Atlantic) or sub-brands which relates
to specific products (Upper Class).
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The promotional objectives will dictate the nature and form the promotional message
takes and the ideal mix of media (several different media will be used in order to
maximise the level of coverage in communicating with the whole of target audience).
The promotional message will have a mix of rational (fairly detailed information newspaper and magazine), emotional (to create involvement with the ad, this is
particularly used by airline - British Airways effort to differentiate itself on service and
friendliness and its promotional campaign positioning it as “the world’s favourite
airline”) and humour appeal (to attract audience’s interest without detracting from the
actual message (the joke about extraordinary leg-room in the latest Virgin ad). A
combination of these different appeals is often used to get the message across.
Where there’s little tangible difference between service providers and service offerings
advertising can play a fundamental role in differentiating and positioning an airline.
Airlines tend to concentrate on building corporate image through their television and
press advertising, leaving tactical price-led advertising to black and white classified
print and to posters. Corporate image is important in this market, where all of the
players offer essentially
the same service and fares. Although much of the high
expenditure is not targeted on the promotion of particular airline products, a significant
proportion is aimed directly on the advertising of specific business products. Some
advertising, both press and TV, describe particular product features, such as arrival
lounges, sleeper seats, standards of catering and value added products such as valet
parking or a limousine service. However, much expenditure, particularly, in the case of
advertising, is devoted to the promotion of an image.
Increased costs for above the line advertising (especially TV) push airlines to go through
the line relying more on below the line activity. Because image is so important in this
industry however a high percentage of the total budget is still devoted to TV advertising.
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Airlines concentrate their communication activities on corporate advertising campaigns
with all their products stemming from a central theme, such as “the world’s favourite
airline”. The breadth and depth of product lines will have a bearing on the complexity
of marketing communications organisation and operations (8 brands for British Airways
against only 4 for Virgin Atlantic). The company structure and the location of marketing
communications will depend on the number of markets served, and also on their relative
importance.
The building up of seamless networks, has seen in chapter 3, has called for integration
of marketing communications among partner airlines. One of the key aspect of
marketing communications is the consistency of the claims made with the actual product
offered. Before privatisation and before they got professional management in BA won
awards with their brilliant advertising campaign, while failing to deliver the goods,
because of diffuse inefficiency. The problem of consistency can be extended to the
concept of seamless journey, when two carriers with different liveries and different
standards of service are involved.
It is a key role in advertising not to over promise to avoid to under deliver. If an airline
raises customers’ expectations too high with its commercials, it will lay the foundations
for disappointing and offending them. Once a credibility gap has been developed it is
hard to erase it.
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10.1.1 British Airways
British Airways has managed in the last 15 years to build the most valued and valuable
brand in the airline business with the co-operation of Saatchi and Saatchi advertising
agency. BA’s distinctive advertising, which has constantly built on the right
expectations, often surprised, thrilled, charmed, and captured the mood of the times
around the world (60 countries) has probably constituted BA’s main sustainable
competitive advantage. Service and product have contributed to the airline’s standards,
but they are less likely to be a major differentiator in an industry where everyone copies
each other in a short time. The emotional and financial investment BA has made in its
communications over time is the main key for its success. In 1982 (when Saatchi and
Saatchi and Lord King were appointed) the turn around began BA was seen as an
unattractive investment prospect by the city, staff had nothing to be proud of and there
was a gap in customers’ mind between the line “We’ll take more care of you” and
reality. Outside the UK the airline was seen as Anglo-centric rather than international
(”Fly the flag”). The initial strategy exploited BA’s key strength, its international
network. The famous line “The World’s Favourite Airline” translated the corporate goal
of being the best and uniquely positioned BA as an airline that more people around the
world choose to fly. The very next efforts will probably be dedicated to spread
uniformity in image and service policies throughout its alliances network.
Key advertising objective has been to add value to the brand giving it a unique and
valuable sense of prestige and status, and in the same time to avoid the association of
big with cold, to try to communicate that the airline really understands and cares about
its customers. There’s no doubt British Airways advertising succeeded in getting people
to pay more and attracting a greater share of the market. A product advantage does not
remain a competitive advantage very long, unless the company aims at staying
constantly ahead of competition (being the most innovative), and customers’
expectations are constantly being raised, making it more and more difficult to surprise
them. On the other hand BA’s advertising has succeeded in growing its brand strength
on key image dimensions such as prestige and status, size and international,
understanding the customer (friendly), leadership and innovation.
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BA’s advertising strategy developed on two parallel lines (as a consequence of new
inputs from the FMCG industry), a masterbrand which represented the global face of the
airline to all flyers and sub-brands to communicate more specific benefits for individual
consumer segments.
A) Masterbrand advertising
We can distinguish different stages in the development of BA’s masterbrand. A first
stage (1983-1985) which relies on the “Flying city” (best known as Manhattan) spot was
designed to establish the new line, focusing predominantly on impressing upon the
customers the size, stature and internationalism of the airline (the ad however was
equally addressed to BA’s staff as a morale booster and to the City. It aimed to signal a
major change was going on and to associate the company to success through the size
concept. A second stage (1985-1987) celebrated change achieved at BA in terms of
service. The “Supercare” campaign provided new support for “The World’s Favourite
Airline” in the form of excellent customer care. The Superman theme was designed to
be impactful and impressive whilst humorous enough to give the commercials warmth.
A third stage (1989-1995) which followed the privatisation and the launch of the first
sub-brand (Club World) left the City on the side and re-focused on the wider customer
base, aiming at refocusing on the umbrella brand, bringing more warmth and humanity
to the airline’s professional and efficient personality. “Global”, “Smiling Face” and
subsequently “Feeling Good” aimed to do this by turning the straight fact that BA
carries more passengers internationally into an involving emotional message: “We bring
24 million people to other people all round the world every year”. The key benefit to
communicate was that people fly to meet people. A fourth stage (1996) which signs the
beginning of BA’s relationship with the new M&C Saatchi is trying to reposition the
airline as more leisure oriented.
B) Sub-brand advertising
This has been mainly related to the Club World, Club Europe, Concorde, Super Shuttle
and First Class products. It is much more tightly focused on specific consumer targets,
the overall aim being of getting more people to travel at a higher price. An example is
the
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£8 million “Boardroom” or “Red eye” ad, which launched the first sub-brand Club
World in 1988. This exploited the end benefit of good service, delivering the
businessman ready to do business. It was targeted at young, go-getting, jet-setting
businessmen. Latest ads such as “Up on the roof” focusing on emerging
businessperson’s needs presented a long haul flights a time to escape from all the
stresses of business and recharge. The 1996 ads for Club World relaunch focus on a
more and more caring airlines offering all the benefits of a cosy and caring environment
(lullaby not included).
C) The strongest airline brand in the world
Interbrand valued the BA brand in 1992 and declared it the most powerful brand in the
world. It is estimated that an increasingly high percentage of corporate assets will rely
on brand values alone. The value of “The World’s Favourite Airline” can easily be
assessed thinking that BA for the last 15 years has been able to command a premium
whilst growing its market share. Advertising has been a major contributor of its success
and £500 million spent on advertising campaigns over that period the best and most
astute investment ever made.
D) Media
Television
British Airways most preferred medium of course. No medium is more adapted to
convey a distinctive corporate image for an airline. British Airways fully take advantage
of this medium including it in almost the totality of its campaigns.
British Airways has produced numerous spots for television some of which are briefly
reported below.
1983 “Manhattan”. In order to build up British Airways corporate image.
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1985 “The empire strikes back”. To create great impact and communicate change.
1987 “Earth to Mars and back”. To put the accent on the fact that big is beautiful.
1988 “Super top class seats”. To launch its first brand Club World.
1990 “BA lifestyle” To address the achievers (featuring Robert Hardy’s voice).
1991 “World’s greatest offer”. To counteract the effect of the Gulf War.
1992 “Feeling good”. To launch a new programme of product service and innovations,
including individual seat back videos for Club World, a new Club World seat design, a
Lounge Pavilion at Heathrow Terminal 4 and complete refurbishment of the airline’s
flagship Concorde.
1994 “Island”. The last Saatchi & Saatchi advertisement. Featuring people and
helicopters approaching an island to wrap it up with red, white and blue silk. Eventually
an aerial view shows the island is a map of the world. The message? Aren’t we great?
1995 “Where is everybody?”. First BA campaign with M&C Saatchi to promote
reduced fares “World Offers” to several destinations and boost advanced booking. The
campaign is part of an attempt to portray BA as more “leisure oriented” than it has been
in the past. An old catchphrase “Where is everybody” updated with new cartoons
characters is used. A sheep who has been jumping over a gate thousands of times
discovers the bed of the person who has been counting him is now empty. A peacock
displaying his feathers finds he is without an audience and so on. The ads show a
telephone number(direct response advertising) or invite to contact a travel agent.
1995 “Thank you”. An advertisement for charity donations on BA flights featuring
Bangladeshi children kissing the camera. Being big and powerful is one thing, you also
have to care about what you are doing and who you do it for.
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1996 “Day dreams”. With the catch phrase “Every year hopes, dreams and ambitions
of 30m people fly with BA”. This is part of a two year £100m world-wide advertising
campaign. It repositions BA as the dream carrier. In the beginning two ads, one aimed at
the business segment and the other at the leisure segment, show a series of day-dreams
by passengers, taking in exotic locations, including the mountains of Wyoming and the
Sierra Nevada desert (see Exhibit 10.1) omissis.
Other spots linked with posters and press advertisements are in the form of day dreams,
and particularly focused at the business segment to relaunch the improved Club World
(for posters and press advertisements linked to this campaign see Exhibit 10.2, 10.3,
10.4 and 10.5). Big is no longer enough in the supposedly caring mid 1990’s. BA now
says it is big and it is kind. The theme also forms part of BA’s new world-wide web site
on the Internet.
Those last spots (1995 and 1996) have been mainly run on Channel Four in the late
afternoon and in the evening during week-days and throughout the day on Sundays.
Press
British Airways second preferred medium is the press with a wide choice of national
dailies, Sunday papers and specialised magazines. Press advertisements often recall and
support major TV advertising campaigns, are linked with sales promotion or are joint
communications with partner airlines (see Exhibit 10.6, 10.7). omissis
Bill posters
British Airways has extensively utilised posters in conjunction with other media. An
example from the past, which makes an exception to this rule, is the campaign to launch
new routes to some European destinations at the end of the 80’s. The posters showed a
typical image of the new destination and/or a play on words:
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“Fasta to the pasta” for the new direct service from Glasgow to Milan, “Olé in one” for
the service from Heathrow to Madrid and “Amsterdam Belfast” for the direct service
from Belfast to Amsterdam.
Another more recent (1995) posters campaign, which was related with press advertising
and point of sales literature featured people from different cultures and countries
together with the leitmotiv of the campaign being “There are more things that bring us
together than keep us apart” (see Exhibit 10.8) omissis.
Recently two campaigns have been supported by posters. One is “Where is everybody?”,
which in addition to normal posters features specially made supports incorporating
electronic display showing all the discounted fares (1995-1996).
The last campaign (1996) which is linked to the relaunch of Club World include posters
on road sites and in underground stations featuring the day-dream concept seen for TV
spots and press advertisements..
Internet
British Airways has just launched its internet site at the address http://www.britishAirways.com. A little bit later than its major competitors.
It’s a very attractive opportunity to market products directly to a selected audience and
to reach present and potential customers world-wide. British Airways site includes
history of the company, information about all its products, its partner airlines, frequent
flyer scheme, fares offers, bookings, schedules, in-flight entertainment (included a list of
movies available on board), information about employees and employment, community
relations etc.
Cyberspace browsers are highly demanding in terms of what they can get on the net and
the level of sophistication of the overall presentation, in addition their loyalty is very
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low. Airlines will need increasingly sophisticated and constantly updated offerings to
attract
and retain the browsers. An ad hoc navigation system can be created and frequent
visitors can be rewarded. It will be essential to monitor the new site and measure its use
to provide useful feedback to its development, to adapt it to what the visitors find
useful.
The airlines need to announce their presence to the world by listing their sites in the
numerous directories or listing the site addresses on their advertisements. The internet in
fact can be used in response advertising as an alternative, or better an integration, to
telephone numbers.
In-flight magazines
Both airlines offer high quality magazines used to advertise the airline and its services
(see chapter paragraph 10.6).
Directories
Yellow pages and other directories are a must for airlines, which often advertise
themselves also in conjunction with travel agents.
E) Classified advertising
British Airways staffing requirement means almost every third week an advertisement is
placed on the press to look for candidates. Positions range from financial controller, IT
specialist and commercial planner to customer service executive, cabin crew and, why
not, international advertising manager. This is a big opportunities for corporate image
people to work very close to the human resource department to enhance the company
image and use it in order to get the best candidates.
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10.1.2 Virgin Atlantic advertising
The role of advertising in relation to Virgin Atlantic success is an important but often
forgotten factor. Although promotion has been product led in its early years, Virgins’
advertising campaigns positioned the airline exactly where it wanted to be, firmly left
of centre. Virgin Atlantic preferred media are television, press and radio.
Despite the fact that Virgin’s ads in the early 80’s were among the most memorable
around, they often did not translate into ticket sales as they were regarded as being
flippant or irrelevant, as the one showing a picture of Richard Nixon, arms upraised,
flashing the “V” for victory with the caption “At least he knew the best way to get to
London”. This is no longer the case. The airline’s more recent TV and radio ads are
specifically aimed at the target market, which is typically younger than the average
business traveller and more feminine.
Virgin Atlantic divides its spend into corporate and business advertising, with the
heaviest spending in the business sector in an attempt to attract this important segment
of the market. The Economy segment is targeted only to push promotional fares. Virgin
Atlantic advertising use a mix of media which includes television, national and local
newspapers and the World Wide Web.
A) Masterbrand advertising
For Virgin Atlantic is very difficult to state if the master brand is “Virgin Atlantic” or
simply “Virgin”. As a matter of fact everything going on under the brand name of
Virgin, is likely to affect the airline reputation. So here it is assumed the airline has a
wider umbrella brand “Virgin” and a masterbrand for the airline business “Virgin
Atlantic”.
B) Sub-brands advertising
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Upper Class call for the biggest share of advertising expenditure. Mid Class however
(now Premium Economy) was launched through advertising campaign and still calls for
a part of the airline’s advertising budget. Economy class is almost exclusively pushed to
fare promotions related campaigns on the press.
C) Media
Television
Its television advertising is mainly focused on its core brand Upper Class with several
campaigns featuring famous testimonials and Branson himself.
One advertising campaign on TV launched in 1992 was designed to get first-time
international travellers to fly Virgin. It featured the actress/comedienne Tracey Ulman
playing a variety of off-beat characters who extol Virgin’s virtues and it resulted in
increased Virgin brands awareness and bookings.
Virgin has recently (last summer) re-run its TV ads featuring the actor Terence Stamp as
testimonial for Upper Class to counter BA’s £115 million upgrade of First Class and
Club World. In order to foreshadow Virgin expansion a new £5 million Virgin
campaign for Upper Class has broken through Rainey Kelly Campbell Roalfe at the
beginning of 1996, starring the actress Helen Mirren, demonstrating extraordinary
legroom.
This last campaign, made of three different spots, has run on Channel Four mainly at
late afternoon in the beginning of this year, with two or three repetitions per day. The
message to be conveyed was especially focused on “seductivity” of business class fares,
limo service and “extraordinary leg-room”.
Press
Brand building is also supported by press advertising with a very simple layout,
featuring key appealing benefits the airline conveys to customers such as leg room and
special awards (see Exhibit 10.9) omissis, no smoking flights and personal TV set (see
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Exhibit 10.10) omissis, wide seats, comfortable space and absolute relaxation thanks to
inflight massage (see exhibit 10.11) omissis.
The second page of the evening standard seems to be one of Virgin Atlantic preferred
positions.
Advertising on the press is also used tactically to support promotional fares for
Economy class (discounted tickets to specific destinations), or to react to competitors’
moves in prices (see Exhibit 10.12) omissis. To this aim both black and white and
Virgin distinctive red ads are used.
An example of tactical use of advertising can be given by the swift answer given by
Virgin Atlantic to British Airways relaunch of First class and Club World. Virgin placed
a full page advertisement in national newspapers challenging BA with comparisons
between its new Club World against Virgin Upper Class and then after a short period
another one to remind Virgin superior service (see Exhibit 10.13) omissis.
Press advertising is also linked with direct response initiatives which facilitate
effectiveness measurement. To this aim advertisements shows different telephone
numbers in order to detect the source of customers enquiries
Some promotional activities are undertaken jointly with partner both in the airline
industry and outside (newspapers, retailers etc.). In November 1995 the “Virgin flies
Delta to New York” full page coloured ad placed in the Financial Times pushed the
Delta-Virgin Atlantic code-sharing.
Radio
Radio has also been used by Virgin Atlantic to support its TV and press campaigns. The
radio better served the airline objectives in terms of targeting for specific segments.
World Wide Web
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Virgin Atlantic is on the net with a complete description of the airline activities at the
address http://www.fly.virgin.com plus a web version of the in-flight magazine under
construction.
The information provided cover news on the airline, its alliances, its promotional
schemes, its frequent flyer schemes, information about hotels, Richard Branson
adventures (hot air), a Virgin flight plan to help browsers select their routes and a Trivia
quiz for browsers.
D) Classified advertisements
Virgin Atlantic uses spontaneous demands for recruitment, in addition it places some
advertisements on the press for planned recruitment. The last ad was placed in the
beginning of the year on the Evening Standard “How was your rush hour today” aimed
at recruiting cabin crew.
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10.1.3 Advertising expenditure and relations with the agencies
Expenditure
Advertising expenditure for the last five years is reported in Table 10.1, 10.2, 10.3, 10.4,
10.5 omissis and Graphs 10.1-10.5 omissis. These data are collected and published by
Register Meal for the main media and include both advertising agency commissions and
production costs. The figures for every brand or grouping around segments (business or
leisure) can be easily read from the tables. If one analyses the total expenditure of the
two airlines, can easily notice how the differences in size and financial resource are key
determinant in an airline advertising budget. However it would probably be more
meaningful to analyse their expenditure in relation to their turnover, and see if there’s
any cyclical or anti-cyclical trend. What can be easily told from the graphs is the trend
of advertising in relation to some seasonal peaks during the year. Advertising budgets at
BA have been relatively low in 1991 and 1992 probably affected by the recession to
increase again since 1993. Virgin Atlantic instead has anticipated the increase in its
advertising expenditure to 1992 and had kept it almost constant in the following years.
British Airways tend to have the same pattern of expenditure during the year, following
the general patterns for the industry, with Virgin overtaking British Airways in its total
expenditure only once in May 1992.
Agencies
Since 1982, when it left Foote Cone & Belding, its American owned advertising agency,
British Airways has been working with Saatchi and Saatchi, the world famous agency
which contributed to its successful image and brands building. In 1995 following
internal disagreement between Maurice Saatchi and his agency, culminating in the start
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up of the new M&C Saatchi, British Airways handed its account to the new agency. One
of the main problems being the global reach of the new agency, M&C eventually
managed to offer a satisfactory coverage through an alliance with French agency
Publicis Communications. All media have been shifted from Zenith Media into
Optimedia. Virgin Atlantic has been a less loyal approach to advertising agencies.
In 1991 and 1992 its account was handled by WM Media and Wollams Moira Gaskin
O’malley, in 1993 these were replaced by Simon Palmer Denton Clemmow Johnson
and MGM. In 1994 it was the time of Rainey Kelly Campbell Roalfe agency which
today still retains the account.
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